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View All Dealer License, General FAQs

What are the insurance requirements?

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are:

$25,000 bodily injury/person/accident
$50,000 combined bodily injury/accident
$25,000 property damage/accident or a combined single limit of $75,000/accident
(Section 402-12-392, Code of Alabama 1975)

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are: $25,000 bodily injury/person/accident $50,000 combined bodily injury/accident $25,000 property damage/accident or a combined single limit of $75,000/accident (Section 402-12-392, Code of Alabama 1975)
Related FAQs in Dealer License, General
The primary location is included in the license fee. There is a $5.00 charge per additional location. (Section 40-12-395, Code of Alabama 1975)
A $5 fee is only required when additional locations are added to the license.
The licensed dealer must apply for an off-site sales event license at least 10 calendar day prior to conducting the off-site sale. The application fee is $25. The off-site sale events shall not exceed 3 per dealer license year with each sale not to exceed 10 consecutive calendar days in duration. A temporary sign must be displayed at the location where the off-site sale is conducted. A facilitator of an off-site sale will be required to obtain a master off-site sales license. The facilitator will be required to verify the off-site license of participating dealers. The facilitator must list each participating dealer’s off-site sale license number on the application. If the dealer and facilitator are the same entity, only the master off-site sales event license is required. (Section 40-12-395, Code of Alabama 1975)
Motor vehicle dealers must electronically update their dealer license information using the Motor Vehicle License Portal. A new insurance certificate must be provided for the new location. Retail dealers must also furnish photographs of the new location and signage.
All dealers are required to become a designated agent.
Licenses are not mailed. When your application has been approved, you will receive an email instructing you to login to the system and print your license.